“While the u-turn is likely to be welcomed by many self-employed people, the policy has put the spotlight on the issue of NI and the rights and benefits of those working in the gig economy.

“Delaying the increase allows more time for the government to come up with a pension solution for the self-employed, which could include rebating the increase in NI into a private funded pension of the self-employed individual’s choice.”

Sean McCann, chartered financial planner at NFU Mutual, said:

“The true cost of this decision may still be borne by the self-employed. It’s clear that the chancellor will look to recoup money from other sources and many tax reliefs will be in his sights.”